Airbnb projected lower third-quarter revenue and shorter booking windows on Tuesday, causing its shares to drop 15%. Economic uncertainty is leading travelers to book at the last minute. Domestic travel in the U.S. has been cautious due to economic concerns.
The San Francisco-based company reported a quarterly profit of 86 cents per share, below analysts’ expectations of 92 cents. Airbnb expects Q3 revenue between $3.67 billion and $3.73 billion, missing the $3.84 billion estimate.
Despite a narrower quarterly net loss of 174.3 billion yen, compared to 477.6 billion yen a year earlier, the company expects modest ADR growth in Q3. Nights and experiences booked rose 9%, with significant growth in Latin America and Asia-Pacific.
SoftBank’s average daily rate (ADR) increased by 2% to $169.53. The net income margin dropped to 20% from 26%. Total revenue for Q2 was $2.75 billion, slightly above estimates.